Business Day
*Speeding up wage talks not illogical*** *Editorial, Business Day, Johannesburg, 6 September 2012*THE National Union of Mineworkers (NUM) is clearly an organisation under immense pressure in the wake of the Marikana killings and recent spate of wildcat strikes stoked by upstart competitors in the mining sector. Some will therefore be tempted to dismiss the NUM's suggestion that wage talks with the Chamber of Mines be brought forward as a desperate attempt to salvage some credibility.
They may be right that the NUM is getting desperate, and that it is in its interests to be seen to be providing leadership and pursuing a better deal for ordinary workers. But that does not mean starting wage negotiations earlier than scheduled --- the current two-year agreement expires only in June next year --- is a bad idea.
On the contrary, it is probably unavoidable, from whichever perspective you consider the issue, with the possible exception of that occupied by Julius Malema and others who have sought to cynically extract political capital from tragedy. From a legal standpoint, the chamber would be well within its rights to stand firm and insist that the existing agreement run its course --- and even to dismiss those mineworkers who continue to violate a binding contract signed in good faith with the union that represented them.
It is not management's fault, a person taking a hard line might justifiably point out, that some mineworkers have decided the NUM no longer has their interests at heart. It would set a terrible precedent if the mines were to simply roll over every time their employees decided they needed more money, agreement or no agreement, and especially if they employed violent tactics to reinforce their argument.
Imagine the uproar if the chamber were to decide it no longer felt obliged to honour a wage deal.
But legal theory and practical reality do not always march in step. As much as the NUM needs to be seen to flex its muscles, so the mines need to restore a semblance of order in their labour relations. And Lonmin, above all, needs its employees to go back to work if it is to avoid getting into both technical and financial difficulties. Agreeing to start the wage negotiations due for next year without delay may be the best solution to both parties' worries.
It is also in the mineworkers' best interests, although those at Marikana seem determined to stay out until they get what they want. The trouble is that it gets more difficult and expensive to restart production the longer shafts are closed. And Lonmin needs revenue from its mines to service the debt that keeps them capitalised. Playing hardball for too much longer could well mean there are no jobs to refuse to do.
Starting the wage negotiation process early also provides the opportunity to bring new unions such as the Association of Mineworkers and Construction Union (Amcu) on board, and to introduce collective bargaining in the platinum sector, the absence of which is believed to have contributed to the Marikana miners' disgruntlement.
It will not be easy to make such structural changes to the wage negotiation system used by the mines, and it may not be possible to put everything in place quickly. Union recognition is complex and depends on how organised workers are, and on some mines competition between unions is so intense that management must proceed as if tiptoeing through a minefield.
It is probably also unavoidable that if wage talks start early, the mining companies will end up having to grant bigger increases than they have budgeted for, or than are justified by commodity prices, mining input costs and productivity levels. That has implications for the viability of some marginal operations and the domestic mining industry's ability to attract capital. But it is too late to avoid such dangers now --- they will have to be confronted as and when they present themselves. The priority now is to avoid contagion and get the mining sector producing again.
*From: http://www.bdlive.co.za/opinion/editorials/2012/09/06/editorial-speeding-up-wage-talks-not-illogical*
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